The global memory chip market is experiencing a rare super cycle. Driven by strong HBM sales and a significant surge in DRAM and NAND prices, Samsung Electronics and SK Hynix are expected to set new historical records for first-quarter operating profits, nearly doubling their previous records.
According to TrendForce data, Q1 DRAM and NAND Flash contract prices rose 90% to 95% and 55% to 60% quarter-on-quarter, respectively. The upward trend is expected to continue in Q2.
According to forecasts from sell-side institutions, Samsung Electronics' Q1 operating profit is estimated to reach 40 trillion to 45 trillion South Korean won, while SK Hynix's is projected at 36 trillion to 39 trillion South Korean won. Both companies set their previous single-quarter operating profit records in the fourth quarter of last year. If the sell-side forecasts are accurate, both companies will simultaneously break their records, with the new high being approximately double the old one.
Globally, only a handful of companies can reach this scale, including tech giants like Nvidia, Apple, Alphabet, Microsoft, and Saudi Aramco.
Samsung Electronics is scheduled to release its earnings forecast on April 7 (Korean time), SK Hynix will hold its earnings call on April 23, and Samsung's call is set for April 30.
<h2>Price Surge: DRAM Contract Prices Nearly Double in a Single Quarter</h2>
The surge in memory chip prices is the direct driver of this profit explosion.
According to TrendForce data, Q1 DRAM and NAND Flash contract prices rose 90% to 95% and 55% to 60% quarter-on-quarter, respectively. More notably, TrendForce forecasts that the upward trend will continue in Q2, with DRAM contract prices potentially increasing by another 58% to 63%, and NAND Flash by 70% to 75%.
This trend was already foreshadowed in Micron's earnings report last month. Its fiscal second quarter of 2026 (December 2025 to February 2026) revenue reached $23.86 billion, 27% higher than its guidance of $18.7 billion; non-GAAP operating profit was $16.5 billion, exceeding guidance by approximately 46%.
<h2>Supply Bottleneck: New Capacity Expected to Be Released No Earlier Than Late 2027</h2>
Structural shortages on the supply side are the fundamental reason for this price increase. Industry insiders expect that newly built cleanroom capacity will not translate into effective supply until late 2027 to 2028 at the earliest.
Against this backdrop, AI cloud service providers are actively signing 5-year long-term procurement agreements with memory manufacturers to secure volumes, and the shortage in the bulk storage market is expected to persist.
Industry insiders point out that the key long-term variables in the storage industry are whether storage efficiency technologies like Google's TurboQuant can effectively reduce server procurement volumes and whether cloud data center companies can maintain their current capital expenditure pace.
IDC analyst Jitesh Ubrani also stated, &#34;The storage shortage will continue through 2027. Even if prices decline from 2028, they will not return to 2025 levels.&#34;
<h2>Downstream Under Pressure: Smartphone Shipments Expected to Decline Over 12%</h2>
The downstream consumer electronics industry is bearing the cost of the price surge.
IDC predicts that due to the pressure of storage costs, global smartphone shipments will decrease by 12.9% this year, and PC shipments will fall by 11.3%, describing the impact as a &#34;tsunami.&#34;
Storage prices have become so high that original equipment manufacturers are proactively reducing product specifications or even completely eliminating entry-level product lines. Display panel manufacturers have reportedly also lowered their full-year shipment targets as a result.
For major storage chip manufacturers, the other side of record profits is the continuous accumulation of pressure on their customers. As the supply-demand imbalance extends downstream along the industrial chain, the structural impact of this memory super cycle on the overall consumer electronics market may become a risk variable that investors need to continuously monitor.

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Q1 DRAM and NAND contract prices rose 90% to 95% and 55% to 60% quarter-on-quarter respectively, with the upward trend expected to continue in Q2. Analysts predict Samsung Electronics' Q1 operating profit to reach 40 trillion to 45 trillion South Korean won, and SK Hynix's to be between 36 trillion and 39 trillion South Korean won, doubling the record quarterly profits set in the fourth quarter of last year. Memory supply remains tight, with new production capacity not expected to be released until late 2027 at the earliest

- The global memory chip market is experiencing a rare super cycle, driven by strong HBM sales and significant price increases in DRAM and NAND.  
- In Q1, DRAM and NAND Flash contract prices rose by around 90% to 95% and 55% to 60%, respectively, with predictions for continued price increases into Q2.  
- As a result, major companies like Samsung Electronics and SK Hynix are expected to report record profits, highlighting the structural supply constraints impacting the overall consumer electronics market.

DRAM Prices Double, Samsung and SK Hynix Q1 Profits Expected to Double!